Modern Russian Agriculture Grain, Meat and Dairy Producer

A modern agricultural company with clear strategic advantages is seeking a private equity or strategic partner to develop its opportunities
The Business
The Company is an operational agricultural holding that is primarily engaged in crop production, meat and dairy farming. The Company’s farmland, over 70,000 hectares, is located south of Moscow in the Lipetsk and Voronezh regions and it has the capacity to increase to 500,000 hectares.

Grain production of wheat, triticale, barley and maize uses about 55% of the Company’s current arable land and contributes 84% total holding revenues. The Company’s livestock herd consists of 6,500 cattle including 2,800 milk cows. Milk production is 9,500 tons.

A long-term grain purchase agreement is in place with leading ethyl alcohol distilleries in Russia. The Company has maintained a steady level of reserves in order to increase its revenues, in particular from alternative uses of land that is currently in fallow.
Market
Russian farmland is an attractive investment opportunity due to its undervaluation and the rising global demand for crops. The Russian agricultural sector is highly fragmented, so more global entrants are expected, with some IPO and M&A activity in the near future.

Domestic Russian grain demand growth is estimated at nearly 4.0% pa due to rising demand for feed-grade grain. By improving harvest yields and increases arable land, Russia could become a leading food exporter due to its proximity to populous Asian markets. Russia has the world’s largest reserve of “chernozem” – black earth, which is among the world’s most fertile types of soil – and less than half of it is currently used for arable crops.

Company management has extensive international experience in agricultural land management services in Europe and CIS. The Company is seeking a private equity or strategic partner to further develop its opportunities.
Sector: Agriculture
Segment: Farming
Region: Russia
Financing Size: $20m to $50m
Contact: — —
Company: Link Capital
Telephone: +7 495 786 6661
Email: [email protected]